---
kind: "section"
citation: "15 U.S.C. § 1221"
title: "15"
title_heading: "Commerce and Trade"
number: "1221"
heading: "Definitions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/1221"
units:
  - "Chapter 27 — Automobile Dealer Suits Against Manufacturers"
---

# §1221. Definitions


As used in this chapter—

- (a) The term “automobile manufacturer” shall mean any [person](/usc/15/7a.md?p=6), partnership, corporation, association, or other form of business enterprise engaged in the manufacturing or assembling of passenger cars, trucks, or station wagons, including any [person](/usc/15/7a.md?p=6), partnership, or corporation which acts for and is under the control of such manufacturer or assembler in connection with the distribution of said automotive vehicles.
- (b) The term “franchise” shall mean the written [agreement](/usc/15/7a.md?p=2) or contract between any [automobile manufacturer](#a) engaged in [commerce](#d) and any [automobile dealer](#c) which purports to fix the legal rights and liabilities of the parties to such [agreement](/usc/15/7a.md?p=2) or contract.
- (c) The term “automobile dealer” shall mean any [person](/usc/15/7a.md?p=6), partnership, corporation, association, or other form of business enterprise resident in the United States or in any Territory thereof or in the District of Columbia operating under the terms of a [franchise](#b) and engaged in the sale or distribution of passenger cars, trucks, or station wagons.
- (d) The term “commerce” shall mean commerce among the several [States](/usc/15/15g.md?p=2) of the United States or with foreign nations, or in any Territory of the United States or in the District of Columbia, or among the Territories or between any Territory and any [State](/usc/15/15g.md?p=2) or foreign nation, or between the District of Columbia and any [State](/usc/15/15g.md?p=2) or Territory or foreign nation.
- (e) The term “good faith” shall mean the duty of each party to any [franchise](#b), and all officers, employees, or agents thereof to act in a fair and equitable manner toward each other so as to guarantee the one party freedom from coercion, intimidation, or threats of coercion or intimidation from the other party: Provided, That recommendation, endorsement, exposition, persuasion, urging or argument shall not be deemed to constitute a lack of good faith.

## Source credit

(Aug. 8, 1956, ch. 1038, § 1, 70 Stat. 1125.)